Oil falls on Iran war uncertainty and Democrats' midterm sweep
USO•Oil prices fell as investors awaited developments in the US-Israeli war on Iran after Democrats won control of Congress in the midterm elections. Brent fell 0.7% to $101.85 a barrel and WTI dropped 1.2% to $94.91, while a reported 5.27-million-barrel drawdown in US crude stocks offered some support.
1. Oil prices decline
Brent futures fell $1.75, or 0.7%, to $101.85 a barrel at 1034 GMT, after falling as much as $2 earlier. US West Texas Intermediate crude fell $1.18, or 1.2%, to $94.91, after earlier rising $1.
2. War talks in focus
Investors watched for progress in talks to end the US-Israeli war on Iran. A senior Iranian official said Iran and the United States remain far from a deal, while President Donald Trump told the Financial Times the United States had no immediate plans to strike Iran. Qatar stepped up mediation efforts to avert an escalation of attacks.
3. Supply and inventory data
Middle East flows of crude, condensate and refined products, excluding LPG, averaged 17.1 million barrels per day in October, down from 18.9 million bpd in September but roughly three-quarters of pre-war levels. US crude stocks fell 5.27 million barrels in the week ended October 30, market sources said, citing American Petroleum Institute data; analysts had expected an increase of about 880,000 barrels. Official US Energy Information Administration data was due later Wednesday.
